Re: Odyssey Marine Article...

The battle for the 'Mercedes' millions
Could the WikiLeaks cables decide the fate of a $500m treasure discovered off the coast of Spain? Dale Fuchs reports

Tuesday, 8 February 2011SHARE PRINTEMAILTEXT SIZE NORMALLARGEEXTRA LARGE
JONATHAN BLAIR
On deck during an Odyssey operation

or 200 years, the silver coins settled silently into the Atlantic seabed, 3,000 feet beneath the waves. They gathered in clumps like rocks across a vast swath of ocean floor near southern Portugal, crusting over with sediment and weighing a total of 17 tonnes.

The coins were certainly of no use to the 250 sailors who carried them from Peru on what was probably the Spanish frigate Nuestra Señora de las Mercedes, which sank in 1804, torn apart by British cannon fire. But now, transported from their watery-yet-lucrative grave to litigious landlubbers, those 600,000 idle coins, reportedly worth up to $500 million, are working overtime.

They have sparked a high-stakes legal battle in the United States between Spain, which claims ownership of the bounty, and Odyssey Marine Exploration, the American shipwreck-hunting company that detected it with hi-tech robots, extricated it from the seabed and flew it in bucketfuls to Florida in 2007. And they have dredged up murky questions about ownership and preservation of the three million shipwrecks that Unesco believes still rest on the world's ocean floors.

Most recently those crusty coins, believed to be the largest collection from a single deep-water site, have a caused diplomatic embarrassment too, thanks to US State Department cables released by WikiLeaks. They revealed the latest, and highly unlikely, weapon in the transatlantic skirmish over the sunken treasure: an impressionist painting by Camille Pissarro, entitled Rue Saint-Honore, Apres Midi, Effet de Pluie.

This painting, valued at $20 million, hangs in Madrid's Thyssen-Bornemisza Museum, ostensibly sharing nothing in common with naval strife or shipwrecks except perhaps the rain water which splashes on Pissarro's grey Parisian street.

But the painting was once owned by a German Jew who was forced to sell it cheaply to Nazi officials in exchange for an exit visa in 1939. The owner's descendants in California have waged their own legal bout with the Spanish state since 2005. The museum refuses to relinquish it, arguing that it was bought honestly long after the Nazis stole it. Enter WikiLeaks. According to the cables, the US government offered to help Spain in its legal fight for the sunken treasure in return for Spanish assistance in recovering the Pissarro.

In the cables, the American ambassador suggested that the two countries "avail themselves of whatever margin for manoeuvre they had, consistent with their legal obligations, to resolve both matters in a way that favoured the bilateral relationship."

It is not known whether such a swap was indeed offered. But the possibility quickly became cannon fodder for the undersea archaeology company, which is using the alleged collusion between the two governments to bolster its case before a US appeals court.

"The possibility that someone in the US government came up with this perfidious offer to sacrifice Odyssey, its thousands of shareholders, and the many jobs created by the company in exchange for the return of one painting to one individual is hard to believe," Odyssey's chief executive, Greg Stemm, said in a written statement when the cables were published in December.

Odyssey does not believe there is enough evidence to establish that the treasure came from Nuestra Señora de las Mercedes, which was attacked by British ships drawing Spain into the Napoleonic Wars. It simply refers to the wreck by a code-name, Black Swan. But even if the Black Swan is the Mercedes, the company believes it still has a right to the treasure. Mercedes, Odyssey argues, was carrying out a commercial mission, and the bulk of the silver coins belonged to merchants, not the Spanish state. Under US law, foreign states have the right to claim only military wrecks, the company claims.

Spain's legal counsel, James Goold, of the Washington-based firm Covington & Burling, rejects that claim – "it's like claiming the USS Arizona in Pearl Harbour was a merchant ship" – and accuses the company of thwarting UN conventions on protecting undersea heritage.

"They secretly found the site, they conducted a round-the-clock campaign for two or three weeks to strip the site of coins, and then they sailed away – that's looting, not archaeology," Mr Goold told The Independent. "They didn't seek authorisation or report the ship. Instead they grabbed as many coins as possible and concocted a cover story that they didn't know what ship it was."

According to Mr Goold, Odyssey's own videos, presented as evidence, demonstrate that the ship is the Spanish frigate. "There were Spanish navy cannons, swords, small arms, the rudder, everything just like you see at the Naval Museum in Madrid, but Odyssey didn't recover it," Mr Goold said. "They just took the coins, steered clear of the cannons and claimed it was a mystery ship with no intact hull found. But it wasn't intact because it blew up."

The Spanish government, meanwhile, has treated the company like modern-day pirates. Spanish police blocked Odyssey's ship when it left port at Gibraltar, forcefully searched the cargo and jailed the captain overnight.

Mr Stemm of Odyssey said he was surprised by the hostile treatment. "We had a good relationship with the Spanish government for a long time," he said. "We actually invited the Ministry of Culture to send archaeologists along with the project."

The sunken treasure caper has sparked debate in Spain about how to keep thousands of other colonial-era shipwrecks from private hands. A national environmentalist group, Ecologists in Action, petitioned Spain's Culture Ministry to recover all of the sunken treasures, place the best artefacts in museums and auction the rest – with proceeds going to Latin America's indigenous peoples.

But it is hard for cash-strapped governments such as Spain's to afford the technology to compete with a company like Odyssey, which trades on the Nasdaq stock exchange and which has, according to Mr Stemm, invested $150 million in developing its technology.

Indeed, the world of the hi-tech shipwreck hunter is unlike anything Jacques Cousteau encountered with his aqualung. The company's team of nearly 200 archaeologists, engineers, conservationists and other technicians scan the ocean depths with the help of an eight-tonne underwater robot nicknamed Zeus and a barrage of equipment. Last year's operations cost Odyssey $20 million.

With unmanned robots reaching record depths throughout the world, archaeologists are increasingly concerned how best to preserve underwater heritage. According to Unesco, more than 160 large shipwrecks have been commercially exploited since the 1980s. In 2001, Unesco drafted a convention to protect wreck sites. It recommends preservation of objects in their original locations and bans trade or speculation in artefacts.

Odyssey takes pains to distance itself from irresponsible "treasure hunters" who, as Mr Stemm puts it, "tear apart shipwrecks in search of treasure without any regard to the archaeological and historical importance of the site".

The company points to HMS Victory as an example of its illuminating power. Following an agreement with the British government, the company searched for the 18th century predecessor to Lord Nelson's flagship, considered the largest and most sophisticated of its day. In 2008, Odyssey's crew located the wreck in the English Channel, about 60 miles from where it was thought to have gone down with 900 souls, 110 bronze cannons and £400,000. "It solved a long-standing naval mystery," Mr Stemm said.

Re: Odyssey Marine Article...

Odyssey Marine Exploration, Inc. (Nasdaq:OMEX) today announced that its multi-media travelling exhibit SHIPWRECK! Pirates & Treasure will open to the public at G.WIZ – The Science Museum in Sarasota, Florida on March 3, 2011.

"SHIPWRECK! is exactly the type of captivating and educational exhibit we welcome at G.WIZ. We're looking forward to introducing our guests to the fascinating world of marine archaeological exploration," said Molly Morgan, Director and CEO of G.WIZ.

Exploring much deeper than divers dare go, Odyssey has discovered some of the world's most fascinating shipwrecks. SHIPWRECK! is filled with interactive games and challenges that allow visitors to experience the thrill of shipwreck exploration while exploring some of the world's greatest maritime stories. Featuring over 500 authentic shipwreck artifacts recovered by Odyssey in the Atlantic Ocean, English Channel and Mediterranean Sea, the exhibit takes visitors on a voyage through seafaring history. A variety of authentic shipwreck treasure, decorative porcelain figurines, personal items like combs and tooth brushes and even the 300-year-old logarithmic calculator on a folding rule – the oldest ever recovered on a shipwreck site – will be on display in SHIPWRECK!

"We are delighted to showcase our exhibit in the Sarasota region, where it will be on display until July 31. SHIPWRECK! has a strong track record in the touring exhibit category as it is entertaining and educational for audiences of all ages. Demand for this updated exhibit has been tremendous and it is now booked through mid-2012 allowing us to share our amazing discoveries with more people around the country," said Mark Gordon, Odyssey President and COO.

"SHIPWRECK! will bring real-life treasure and Odyssey's high-tech operations to G.WIZ, a museum whose focus is on science and technology. This is an exciting opportunity for us and for the Sarasota region," continued Mr. Gordon. "Families, schools and youth camps as well as general shipwreck exploration enthusiasts will get a rare opportunity to take part in an experience that fuses history, science and technology through hands-on interactive and traditional exhibits."

The fascinating story of one of America's most famous shipwrecks, the Civil War era SS Republic, is the highlight of the exhibit. The Republic's vivid history is brought to life by the wide variety of treasure on display in the exhibit.First-hand accounts from the passengers aboard the Republic during her final stormy journey help paint the picture of the tragic demise. Brave guests can even step inside a hurricane wind tunnel to experience the high-powered winds that brought down the Republic, as well as thousands of other famous ships throughout history.

The pioneering techniques and technology that allowed Odyssey to discover some of the most famous wreck sites in the world including ancient Roman and Phoenicians wrecks, the Republic, the "Black Swan" site, German U-boats, French and Barbary pirate ships, and Balchin's HMS Victory are also presented. A full-size replica of ZEUS, Odyssey's eight-ton Remotely Operated Vehicle (ROV) which acts as the archaeologist's hands and eyes in the deep ocean will be on display.

Guests can test their skills by attempting to pick up artifacts with a working model of ZEUS' robotic arm. An interactive version of the SS Republic photomosaic is also on display. Visitors can zoom in on specific areas of the photomosaic to find artifacts as small as a domino. More than 2,500 digital photographs, taken by ZEUS, were stitched together to create this large scale photographic map of the wreck site.

Finally, SHIPWRECK!'s "World of Pirates" interactive gallery and activities immerse visitors with the lore, legends, and facts of pirates of the Caribbean, Barbary Corsairs, Privateers and Buccaneers. Guests can learn how to identify pirate vessels on the horizon using spyglasses, raise the banners of notorious pirates, learn to tie essential knots for life on the high seas, and create their own pirate in an interactive game!

SHIPWRECK! Pirates & Treasure will be on display at G.WIZ located at 1001 Boulevard of the Arts in Sarasota. The Museum is open to the public 10 a.m. to 5 p.m. Ticket prices for general admission and this special exhibit are $15 for adults; $10 for children under 16. G.WIZ and ASTC members only pay $5 for adults; $3 for children under 16. For more information, call 941-309-4949.

About G.WIZ

G.WIZ, a 501(c)(3) not-for-profit organization, was founded in 1990 and moved into its current facility in 2000. The organization's mission is to serve as a gateway for lifelong adventures in science G.WIZ is a champion for science education in Sarasota County and the entire state of Florida. The museum serves 125,000 people each year; 50,000 of these are school-age children. G.WIZ is a member of the Association of Science and Technology Centers, the Florida Association of Museums, and the Science and Environment Council of Sarasota County. The museum is located in Sarasota's bayfront cultural district at The Blivas Science & Technology Center, 1001 Boulevard of the Arts, Sarasota, Florida 34236. For more information, visit www.gwiz.org or call 941-309-4949.

About Odyssey Marine Exploration, Inc.

Odyssey Marine Exploration, Inc. (Nasdaq:OMEX) is engaged in deep-ocean exploration using innovative methods and state-of-the-art technology. The Company is a world leader in shipwreck exploration, conducting extensive search and archaeological recovery operations on deep-ocean shipwrecks around the world. Odyssey also owns approximately 41% of Dorado Ocean Resources, a company formed in 2010 to discover and commercialize high-value mineral deposits from the ocean floor, and provides proprietary deep-ocean expertise and equipment to Dorado under contract. Odyssey also provides deep-ocean contracting services to governments and companies around the world.

Odyssey discovered the Civil War-era shipwreck of the SS Republic® in 2003 and recovered over 50,000 coins and 14,000 artifacts from the site nearly 1,700 feet deep. In May 2007, Odyssey announced the historic deep-ocean treasure recovery of over 500,000 silver and gold coins, weighing 17 tons, from a Colonial era site code-named "Black Swan." In February 2009, Odyssey announced the discovery of Balchin's HMS Victory. Odyssey also has other shipwreck projects in various stages of development around the world.

Odyssey offers various ways to share in the excitement of deep-ocean exploration by making shipwreck treasures and artifacts available to collectors, the general public and students through its webstore, exhibits, books, television, merchandise, educational programs and virtual museum located at www.odysseysvirtualmuseum.com.

Odyssey's shipwreck operations are the subject of a Discovery Channel television series titled "Treasure Quest," produced by JWM Productions. The 12-episode first season aired worldwide in 2009.

For details on Odyssey's activities and its commitment to the preservation of maritime heritage please visit www.shipwreck.net.

Odyssey Marine Exploration believes the information set forth in this Press Release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Certain factors that could cause results to differ materially from those projected in the forward-looking statements are set forth in "Risk Factors" in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2009, which has been filed with the Securities and Exchange Commission.

Re: Odyssey Marine Article...

“I guess he’s speaking to me as a CEO of an American company,” says Odyssey Marine CEO Greg Stemm, “so I’d like to respond in an open letter to President Obama:

Yes, Mr. President!

I’m with you on this. We’ve been trying – but it feels like our efforts are being sabotaged by our own government. We need your help – and all we are asking for is an honest and level playing field.

We did “get in the game,” hired lots of people, innovated and created a new industry out of wasted resources lost for centuries at the bottom of the ocean and abided by all applicable laws – and I am sorry to report that the US Government is “encouraging” us by trying to hand over the fruits of our labor to another government.

Your administration is trying to change long-standing US Government policy and is “reinterpreting laws” midstream to appease a foreign government at the cost of hundreds of millions of dollars to US investors – hundreds of millions from our “balance sheets” that we could unleash to create new jobs.

It even appears that our own government was offering to “assist” a foreign government in our courts to literally steal hundreds of millions of dollars from the “balance sheet” of the US shareholders who earned it. The US government is helping to “return” property that the foreign government never owned or had any legal or ethical claim to.

How do I really feel about this?

It’s one thing when bureaucrats are beating you down – you learn after awhile that this is just politics and business – and sometimes you happen to be in the wrong place at the wrong time. When you run a business, you learn to take the knocks that come from anti-business bureaucrats – people who have never had to make payroll, never had to hire someone, never had to let someone go – never created a job, and many who wouldn’t know how to begin to do these things.

We build our companies in spite of these obstacles and pray that we aren’t destroyed by a government employee who can inadvertently wipe out our business with the swipe of his or her pen.

That’s something we’ve learned to live with… reluctantly.

It’s quite another thing when the president asks you to “get in the game” while the people under him go to great lengths to create problems for your company. I hope you can understand how frustrating that can be.

Mr. President, if you really want to encourage us to “get in the game,” please send a message to the US State Department and the Justice Department to encourage them to be absolutely honest with the courts about the actual intent and meaning of the laws that have recently twisted to serve foreign interests.

Please encourage them to allow former US government employees, who drafted and understand the intent of these laws, to explain that intent to the courts.

Respond to the members of Congress who are calling for the State Department to allow the courts to do their work uninfluenced by politics and to back down from an anti-American business policy that is costing American jobs and hundreds of millions of dollars to US investors.

Please just tell the people who serve under you to be honest and do the right thing.

If you can do that, we’re hopeful that justice will be served in the US courts. When we are confident that the fruits of the labor of all our employees can go to our “balance sheets,” instead of being stolen from our shareholders, we are ready to unleash that capital to help accelerate the economic recovery.

Re: Odyssey Marine Article...

TAMPA, Fla., Feb. 17, 2011 (GLOBE NEWSWIRE) -- Odyssey Marine Exploration, Inc. (Nasdaq:OMEX - News), pioneers in the field of deep-ocean shipwreck exploration, has executed an agreement with Galt Resources, LLC under which Galt will have the right to participate in one of Odyssey's projects to be chosen by Galt during 2011. Under the terms of the agreement, Galt will receive half the net proceeds, if any, from the selected project until Galt has recouped its initial investment plus three times the investment. Thereafter, Galt will receive a residual 1% of net proceeds for each $1 million invested. No commissions are being paid and none of Odyssey's securities will be sold or pledged under this agreement. The agreement is non-dilutive and will not result in an increase in total shares outstanding. The return to Galt is based solely on revenue participation from one project. Odyssey has received $5.6 million under this agreement and may opt to receive up to $10 million total.

"This agreement with Galt is a perfect complement to the project agreements already executed with clients of Robert Fraser & Partners over the past year, which allow us to offset upfront risk on a shipwreck project in return for sharing the project's back-end proceeds," explained Greg Stemm, Odyssey CEO. "The Galt agreement is a unique way to leverage our projects while minimizing long-term dilution for shareholders. Overall this is less dilutive project financing than we have received on previous projects and reflects a new model for offsetting risk and leveraging the value reflected in our portfolio of projects."

About Galt Resources

Galt Resources LLC is managed by JCM Marine Ventures, LLC, a company founded and controlled by John Morris. Morris was Odyssey's co-founder and former CEO who retired from Odyssey's management team in 2008. He organized JCM Marine Ventures to leverage the extensive experience he has gained in financing deep-ocean exploration projects during the past 25 years, during which time he has been responsible for structuring deals that resulted in raising well over $100 million in the deep-ocean exploration business.